- Franklin Templeton registers a “Franklin Solana Trust” in Delaware, signaling plans for a Solana ETF.
- The move places Franklin Templeton alongside other asset managers competing to launch a Solana ETF in the US.
Franklin Templeton is making its move in the crypto ETF race, and it’s got its sights set on Solana. The investment giant just took its first big step by registering the “Franklin Solana Trust” in Delaware on February 10.
They’re not alone in this game; heavyweights like Grayscale , Bitwise , and VanEck are all vying to get their own Solana ETFs to market.
What makes this particularly interesting is that they’re targeting Solana, the fifth-biggest player in the crypto world. It’s a bold move that shows how traditional finance firms are looking beyond just Bitcoin and Ethereum. Solana(SOL) is trading at $196.22 down 4.5% in the last 24 hours.
What’s Next for Franklin Templeton’s Solana ETF?
To move forward, Franklin Templeton will need to file two key documents with the Securities and Exchange Commission (SEC): Form 19b-4 and Form S-1. These filings are standard for ETF proposals and will outline the fund’s structure and operational details.
While the filing did not specify which exchange would list the ETF, Franklin Templeton’s existing spot Bitcoin and Ethereum ETFs are listed on the Cboe BZX Exchange, suggesting a similar path for the Solana ETF.
Franklin Templeton has been vocal about its support for the Solana network, praising its ability to handle high transaction volumes and its growing ecosystem of decentralized finance (DeFi) applications.
In January 2024, the firm highlighted Solana’s dominance in memecoin activity, further emphasizing its confidence in the blockchain’s potential.
Bloomberg ETF analysts James Seyffart and Eric Balchunas estimate a 70% chance of a spot Solana ETF being approved by the end of 2025. They noted that the odds improved greatly following the 2024 US presidential election.
Via the X platform, they stated , “Our official altcoin ETF approval odds are out. Litecoin leads with a 90% chance, then Doge, followed by Solana and XRP. We are only doing 33 Act $IBIT -esque filings. But def poss to see futures or Cayman-subsidiary type 40 Act stuff get through as well.”
However, a key hurdle remains, the SEC must first resolve whether Solana should be classified as a security or a commodity. This classification will determine how the SEC evaluates the proposed ETF.
The winds are shifting at the SEC when it comes to Solana ETFs. They’ve started taking a serious look at applications from firms like 21Shares, Bitwise, and VanEck, quite a change from December 2023, when they were showing these same applications the door under Gary Gensler’s watch.
With Franklin Templeton’s jumping into the mix, and things getting interesting, it’s turning into quite the race to see who’ll cross the finish line first with a Solana ETF.
